4 ms·

Bangladesh government to seize control of Grameen Bank

73 points by austenallred 13y ago

capex 13y ago
Dr Younas, the founder of Grameen Bank is a larger-than-life figure in Bangladesh, and a nobel prize winner. His social business empire is now so big, that the government is fearing a scenario where Dr Younas takes part in politics and drives all others out. This is a real possibility they can't ignore, and so the government is trying its best to fabricate stories and discredit this guy.
- droithomme 13y ago
  He also acknowledges that much of the years of endemic poverty and disease in Bangladesh has been due to having a dysfunctional and corrupt government. He is in the process of fixing the country, which as an incidental side effect gives evidence that it was never circumstances beyond their control that caused the failure of the nation, but corruption, fraud and waste. Demolishing Younas's work and returning the country back to a path mired in poverty protects the positions and reputation of those in political power who are now seen by the populace as not just corrupt, not just useless, but actively responsible for past suffering. Eliminating Younas' influence and destroying his work places them back in position as people you have to deal with to get handouts to survive. Self reliance is a threat to dependency and dependency serves the power and wealth of those upon whom people are dependent.
- yaix 13y ago
  They have been doing it for many years. They forced him out years ago. And really, this type of power plays "no matter what the cost" is very common in developing countries and a major reason why countries do not develop.
  - anonymousDan 13y ago
    On this thread, I can really recommend the book "Why nations fail" by Acemoglu and Robinson for an explanation of why this is a common story.
rayiner 13y ago
Grameen bank is not without problems: http://www.cgdev.org/blog/much-grameen-bank-investigation-signifying-what http://www.cgdev.org/blog/much-grameen-bank-investigation-si... The Bengali government's investigation came in response to an investigation by the Norwegian government (which turned up nothing, to be fair): http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8320325/Mohammad-Yunuss-Grameen-Bank-in-turmoil.html http://www.telegraph.co.uk/finance/newsbysector/banksandfina... I encourage you to read the article. The bank has become involved in all sorts of unrelated enterprises. And micro lending has hit major snags in India, where it has strayed from the original principles of Grameen and become a general payday scam. I'm far from one to defend the Bengali government. It's the poster child of a well intentioned democracy that ultimately succumbed to the character flaws of its polity. The trajectory was a bitter disappointment to my dad, who was an enthusiastic college student during the Bengali independence. All that said, there are two sides to every story, especially in a place like Bangladesh. The comments below are certainly true, though: Dr. Yunus has contemplated getting into politics and that has the existing parties, headed by hereditary chairwoman, very nervous.
- capex 13y ago
  I didn't find the reference to unrelated spending by Grameen in the linked article.
  - rayiner 13y ago
    The article in the submission mentions the bank's involvement in unrelated areas: "The dispute is driven in part by the rapid growth of Grameen Bank, which is at the center of a sprawling empire that includes 48 companies including the nation's biggest mobile-phone operator and a yogurt maker." I removed the comment about the use of capital, because it's an allegation not a confirmed fact.
    - hga 13y ago
      Good to see that correction. Under what legal theory is the government taking over the bank?
contingencies 13y ago
Is there any country in which the relationship between the finance sector and politics is not ultra-seedy and ridden with dirty laundry and media-swipes? Regardless of what winds up happening, best of luck to the Bangladeshi people.
cynusx 13y ago
looks like the bangladeshi government wants to tap new sources of revenue by taking over successful businesses, textbook political corruption.
- pavs 13y ago
  Thats not true, the government actually owns a large share of Grameen bank. Actually they are the largest shareholder of GB. Technically and legally the government has the right to take over the bank and restructure it in according to the "constitution" of the bank. There are some minor discrepancies, nothing serious. However they could have handled it better, more diplomatically without pissiing off everyone. It goes without saying, as others mentioned already, the current government is rightfully scared of Yunus, he is extremely popular and well received by everyone outside the current political parties. At one time, he contemplated joining politics; but decided against it. If he decides to run again, he can single handedly wipe out the current political status quo. It doesn't look like he is interested in getting his hands dirty.
denzil_correa 13y ago
Bangladesh government has denied plans to take over Grameen Bank. http://www.foxnews.com/world/2013/08/06/bangladesh-denies-plan-to-take-over-grameen/ http://www.foxnews.com/world/2013/08/06/bangladesh-denies-pl...

73 points by austenallred 13y ago

capex 13y ago

Dr Younas, the founder of Grameen Bank is a larger-than-life figure in Bangladesh, and a nobel prize winner. His social business empire is now so big, that the government is fearing a scenario where Dr Younas takes part in politics and drives all others out. This is a real possibility they can't ignore, and so the government is trying its best to fabricate stories and discredit this guy.

droithomme 13y ago
He also acknowledges that much of the years of endemic poverty and disease in Bangladesh has been due to having a dysfunctional and corrupt government. He is in the process of fixing the country, which as an incidental side effect gives evidence that it was never circumstances beyond their control that caused the failure of the nation, but corruption, fraud and waste. Demolishing Younas's work and returning the country back to a path mired in poverty protects the positions and reputation of those in political power who are now seen by the populace as not just corrupt, not just useless, but actively responsible for past suffering. Eliminating Younas' influence and destroying his work places them back in position as people you have to deal with to get handouts to survive. Self reliance is a threat to dependency and dependency serves the power and wealth of those upon whom people are dependent.
yaix 13y ago
They have been doing it for many years. They forced him out years ago. And really, this type of power plays "no matter what the cost" is very common in developing countries and a major reason why countries do not develop.
- anonymousDan 13y ago
  On this thread, I can really recommend the book "Why nations fail" by Acemoglu and Robinson for an explanation of why this is a common story.

rayiner 13y ago

Grameen bank is not without problems: http://www.cgdev.org/blog/much-grameen-bank-investigation-signifying-what http://www.cgdev.org/blog/much-grameen-bank-investigation-si... The Bengali government's investigation came in response to an investigation by the Norwegian government (which turned up nothing, to be fair): http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8320325/Mohammad-Yunuss-Grameen-Bank-in-turmoil.html http://www.telegraph.co.uk/finance/newsbysector/banksandfina... I encourage you to read the article. The bank has become involved in all sorts of unrelated enterprises. And micro lending has hit major snags in India, where it has strayed from the original principles of Grameen and become a general payday scam. I'm far from one to defend the Bengali government. It's the poster child of a well intentioned democracy that ultimately succumbed to the character flaws of its polity. The trajectory was a bitter disappointment to my dad, who was an enthusiastic college student during the Bengali independence. All that said, there are two sides to every story, especially in a place like Bangladesh. The comments below are certainly true, though: Dr. Yunus has contemplated getting into politics and that has the existing parties, headed by hereditary chairwoman, very nervous.

capex 13y ago
I didn't find the reference to unrelated spending by Grameen in the linked article.
- rayiner 13y ago
  The article in the submission mentions the bank's involvement in unrelated areas: "The dispute is driven in part by the rapid growth of Grameen Bank, which is at the center of a sprawling empire that includes 48 companies including the nation's biggest mobile-phone operator and a yogurt maker." I removed the comment about the use of capital, because it's an allegation not a confirmed fact.
  - hga 13y ago
    Good to see that correction. Under what legal theory is the government taking over the bank?

contingencies 13y ago

Is there any country in which the relationship between the finance sector and politics is not ultra-seedy and ridden with dirty laundry and media-swipes? Regardless of what winds up happening, best of luck to the Bangladeshi people.

cynusx 13y ago

looks like the bangladeshi government wants to tap new sources of revenue by taking over successful businesses, textbook political corruption.

pavs 13y ago
Thats not true, the government actually owns a large share of Grameen bank. Actually they are the largest shareholder of GB. Technically and legally the government has the right to take over the bank and restructure it in according to the "constitution" of the bank. There are some minor discrepancies, nothing serious. However they could have handled it better, more diplomatically without pissiing off everyone. It goes without saying, as others mentioned already, the current government is rightfully scared of Yunus, he is extremely popular and well received by everyone outside the current political parties. At one time, he contemplated joining politics; but decided against it. If he decides to run again, he can single handedly wipe out the current political status quo. It doesn't look like he is interested in getting his hands dirty.

denzil_correa 13y ago

Bangladesh government has denied plans to take over Grameen Bank. http://www.foxnews.com/world/2013/08/06/bangladesh-denies-plan-to-take-over-grameen/ http://www.foxnews.com/world/2013/08/06/bangladesh-denies-pl...